Icap hit by meltdown in Europe as profits fall 25pc

Icap, the world’s largest currency dealer, has been hammered by the eurozone crisis as it revealed a 25 per cent slump in profits. Shares closed almost 10 per cent down at 281.5p.

Michael Spencer, the group chief executive and prominent Tory donor, chose not to sugar the pill for investors. He said: ‘I do not believe the negative environment will continue indefinitely but equally I do not expect it to improve imminently.’

The firm – which brokers giant transactions between banks – has suffered as investment banks have cut back their trading activity.

Tough market: Icap expects profits for the year to the end of March 2013 to be at the lower end of analyst forecasts

Spencer said: ‘This has been one of
the toughest periods in my 36-year career in the wholesale financial
markets. Trading volumes this year have fallen significantly across
nearly all asset classes.’

Icap
posted a 25 per cent drop in operating profit to £144million in the six
months to the end of September. Revenue fell 14 per cent to
£746million.